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Full-Text Articles in Law
The Spurious Allure Of Pass-Through Parity, Karen C. Burke
The Spurious Allure Of Pass-Through Parity, Karen C. Burke
UF Law Faculty Publications
In 2017, Congress reduced tax rates on both corporate and noncorporate income. The drafters invoked the concept of pass-through parity to justify lower rates on noncorporate business income, resulting in a new and highly controversial deduction for pass-through owners under § 199A. The concept of pass-through parity conflates equitable treatment of different entity forms with equitable distribution of the ultimate tax burden among labor and capital. The flawed rationale for § 199A may be viewed as an attempt to preserve the pre-2017 preference for pass-through income; conceptually, the advantage of lower corporate rates is limited to the availability of a …
The Moving Target Of Tax Reform, Karen C. Burke, Grayson M.P. Mccouch
The Moving Target Of Tax Reform, Karen C. Burke, Grayson M.P. Mccouch
UF Law Faculty Publications
In 2000, Professor William Turnier proposed a package of three reforms to make the estate tax more “equitable” and “taxpayerfriendly.” All of his proposals—allowing a surviving spouse to inherit a deceased spouse’s unused exemption, replacing the state death tax credit with a deduction, and indexing the exemption for inflation—were eventually enacted. Today, the estate tax remains on the books, but changes in rates and exemptions have severely curtailed its role in the larger federal tax system. Income tax rate reductions for capital gains and dividends have further lightened the tax burden on capital income, and international pressure to reduce the …
Meaningless Comparisons: Corporate Tax Reform Discourse In The United States, Omri Y. Marian
Meaningless Comparisons: Corporate Tax Reform Discourse In The United States, Omri Y. Marian
UF Law Faculty Publications
This article examines the role that international comparisons play in current corporate tax reform discourse in the United States. Citing the need to make the U.S. corporate tax system more competitive, comparisons are frequently used to assess other jurisdictions' tax-competitiveness, and many legislative proposals are supported by such comparative arguments. Examining such discourse against the background of several theoretical approaches to comparative law, this article argues that, to the extent that comparisons are aimed at providing guidance for prospective reform, this purpose is not well served. Participants in the corporate tax reform discourse, from both sides of the aisle, lack …
Is The Corporate Tax System "Broken"?, Karen C. Burke
Is The Corporate Tax System "Broken"?, Karen C. Burke
UF Law Faculty Publications
The slated expiration of the Bush Administration's tax cuts in 2010 highlights the instability of the current 15% rate on dividends and capital gains. Meanwhile, pressure has mounted to reduce U.S. corporate tax rates to improve competitiveness in an increasingly global economy. Much of the 1986 Act reform of the corporate tax-base-broadening combined with lower rates - has unraveled, leaving the U.S. with a high statutory corporate tax rate and narrow corporate tax base. Despite renewed interest in base-broadening and loophole-closing, the goal of corporate tax reform remains elusive. Thus far, proponents of corporate tax reform have largely sidestepped the …
Turning Slogans Into Tax Policy, Karen C. Burke, Grayson M.P. Mccouch
Turning Slogans Into Tax Policy, Karen C. Burke, Grayson M.P. Mccouch
UF Law Faculty Publications
The article examines the Bush Administration's tax cutting agenda, focusing on recent attempts to repeal the estate tax and to eliminate the shareholder-level income tax on corporate dividends. In each of these two seemingly disparate episodes, the Administration used dubious economic claims and populist rhetoric to promote tax cuts without considering revenue costs or distributional effects. The legislative outcomes, however, were driven largely by budget constraints and interest group politics. In conclusion, the article suggests that the Administration's tax cutting agenda is best understood in terms of politics and ideology rather than conventional tax policy.
Integration In An Integrating World, Yariv Brauner
Integration In An Integrating World, Yariv Brauner
UF Law Faculty Publications
During the second half of the last century, many countries gradually replaced their so-called classical corporate tax regimes, under which corporate earnings were taxed twice -- once in the hands of the corporation, and again when distributed to corporate shareholders as dividends -- with an integrated regime (imputation), which taxed such earnings only once. The driving force behind this trend was the expectation of significant efficiency gains. This clear and gradual trend has been abruptly reversed with the turn of the century. The phenomenon we call globalization, and in particular the proliferation of cross-border business and investment, has materially contributed …
A Whirlwind Tour Of The Internal Revenue Code's At-Risk And Passive Activity Loss Rules, Boris I. Bittker, Martin J. Mcmahon Jr., Lawrence A. Zelenak
A Whirlwind Tour Of The Internal Revenue Code's At-Risk And Passive Activity Loss Rules, Boris I. Bittker, Martin J. Mcmahon Jr., Lawrence A. Zelenak
UF Law Faculty Publications
After providing a glimpse at the historical computation of business operating profit or loss, the authors describe the use of tax shelters as well as legislative responses to them. The authors examine the at-risk and passive activity loss rules, detailing the scope of these rules and offering guidance in the computation of deductions and losses.